Tesla Holds Nearly $1B in Bitcoin Despite 71% Profit Crash

Tesla shares initially dipped following the report but later recovered slightly in after-hours trading, buoyed by investor confidence in the company’s long-term roadmap, including its AI and robotics ventures.

“Uncertainty in trade policy and shifting political sentiment are impacting Tesla’s cost structure and could weigh on product demand in the near term,” the company noted in its investor update.

Despite market turbulence, Tesla reported it still holds 11,509 bitcoins, worth $951 million as of March 31. That marks a decrease from $1.08 billion at the end of 2024, driven largely by fluctuations in Bitcoin’s price rather than any active trading. Tesla confirmed it did not buy or sell any cryptocurrency during the quarter.

Tesla’s sizable Bitcoin portfolio has become a staple of its balance sheet since the company first disclosed its $1.5 billion investment in early 2021. While the company has sold off portions in past years, the core reserve has remained relatively untouched in recent quarters.

Automotive revenue, Tesla’s core business, fell to $14 billion, down nearly 20% from Q1 2024. The slump was attributed to reduced vehicle deliveries, intensifying competition from Chinese EV makers, and delays in scaling up its next-generation platform.

In contrast, Tesla’s energy generation and storage segment was a bright spot, surging 67% to $2.73 billion. Its “Services and Other” division also rose 15% to $2.64 billion, thanks to increased revenue from Supercharging, insurance, and maintenance services.

In a surprise announcement during the earnings call, CEO Elon Musk said he plans to scale back his duties at the U.S. Department of Government Efficiency (DOGE) , a nontraditional advisory role he took in 2024 that drew significant scrutiny.

Elon Musk announced that beginning in May, he will scale back his involvement with the Department of Government Efficiency (DOGE), dedicating only one to two days per week, citing that major groundwork has been completed. The move comes amid investor concerns that his political affiliations were weighing on Tesla’s brand appeal.

Musk’s government involvement had become a distraction, particularly after Tesla’s declining U.S. market share in early 2025 and boycott threats from key demographics. Some institutional shareholders had recently urged the board to demand Musk re-focus on Tesla’s core business.

Despite the financial setback, Tesla reaffirmed its commitment to innovation. The company confirmed that new low-cost models are on track for production in early 2025, a key factor in its affordability strategy.

Tesla is also moving forward with plans to launch a robotaxi fleet in Austin, Texas, using its Model Y vehicles with advanced Full Self-Driving (FSD) software. Remote human monitoring will be employed to improve safety.

Meanwhile, Tesla’s humanoid robot project, Optimus, is gaining traction. The company said it has improved unit cost efficiency and will begin scaling production, positioning the robot as a future labor-saving solution in Tesla factories and beyond.

While Tesla’s Q1 report signals operational and market challenges, particularly in EV demand and global trade dynamics, its strong balance sheet, strategic crypto holdings, and ambitious product pipeline may offer a path forward. Elon Musk’s reduced government involvement could help realign the company with its long-term brand and shareholder interests.

As the auto and energy giant pivots toward affordability, automation, and AI — investors will be watching closely to see if Tesla can recharge its momentum in the quarters ahead.